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Dick Bove doesn't want writedowns of mortgages partly because the guy who pays his bills is not getting the same deal. He then says that all of those guys should stop paying their mortgages.

He is essentially making the case, unknowingly, that indeed, all mortgage payers and most cash purchasers of homes do indeed deserve an amnesty cramdown of their mortgages or a cash reimbursement!

In reality, Bove is really just making a case for the banks to not pay any deal. He is for the banks. This deal essentially is an admission by the banks that they were at fault for the mortgage crisis. Bove is deflecting that blame onto the borrowers but he can't do that under this deal!

Bove does not understand that folks lost TRILLIONS of dollars because this is what the banks did:

The banks (through the central banking system) introduced massive easy money. The amount of easy money caused the prices to artificially increase and then crash due to banks abandoning sound underwriting. Therefore, let us see some examples of how it worked.

1. The guys who bought a house with a fixed mortgage and 20 percent or an easy money mortgage in 2005 had no clue that there was a housing bubble unless they were studying the bubble. These folks had no clue that the underwriters had been pulled and that the scam was set up all the way back at Basel 2 in 1998. Those guys should both get cramdowns. Would Bove, apparently the bank shill here, go for that? I doubt it.

2. The guy who paid cash in 2005 and saw the value crash is also owed by the banks because he bought at an inflated price that was artificially inflated by the easy money loans that came out.This would not affect buyers in the 90's, or would it? Maybe. Would Bove go for his reimbursement? Of course he wouldn't.

3. The average American had not seen a bubble like this before, and the S and L crisis was smaller, was not even a bubble according to Barry Ritholtz, and happened many years ago. The transfer of wealth from main street to Wall Street was massive in the current bubble. Trading profits were massive and the richest folks made bank through this lending. The banks made massive profits, and also were bailed out when they failed. They also are getting their real estate back, so when Bove said they lost money he is flat out lying or he is just ignorant.

He is brazenly deflecting blame off the banks and sounds so Tea Party it makes me nauseous. The truth is, it is not just the borrowers of toxic mortgages that have been hurt. All mortgage lendees and many cash buyers, depending on timing, were hurt and the banks owe them too!

Thanks, Tricky Dick 2, for making my argument which I have made ever since I discovered a housing bubble in Reno, NV in 2005.

The bottom line is this: The housing bubble was a premeditated scam, and the easy money bloated the prices of the houses. The securitization of loans allowed the bloat and the selling of the securities to unsuspecting investors. The selling of the securities was fraud and could be prosecuted under RICO. Henry Paulson should stand trial for this and intent does not have to be proved under RICO. Only a pattern of fraud has to be proven under RICO.

On the front end, the mortgages were not for the most part illegal, yet they were immoral. And they were just plain wrong. Mortgages set aside for affluent folks, the easy money toxic ones, were allowed to be sold like a lemon used car, to the masses of Americans. Banks knew they could hide the loans with off balance sheet banking allowed by Basel 2 and they knew they could get rid of them through mispriced CDO's that deliberately failed to assign proper risk to the loans.

That is what helped keep the easy money so easy for so long.

And the same Basel 2 conference that adopted the off balance sheet banking also adopted the phony assumptions that underpinned the risk management of the CDO's. The risk management mathematical formula assigned a low risk to the scenario of mass mortgage defaults. And this was accomplished knowing full well the sad end of the Japanese housing bubble.

This is why the housing bubble was a premeditated and preplanned scam!

Add to this the knowledge that Alan Greenspan said you could get a better deal with an adjustable mortgage in February, 2004, and you see that the Fed Chairman was in on the scam as well!

Understand also, that people conveniently forget that David Lereah and NAR were saying daily, with the power of main stream media behind them, that you would be locked out of housing FOREVER if you did not get a loan now.

The next housing bubble will be government guaranteed, rather than bogus AAA guaranteed. The banks will not care about the moral hazard because apparently only borrowers, not bankers have moral hazard. That is hogwash as are Bove's arguments. He is trying to get sympathy for scorpion banks. But, in the words of Crosby, Stills and Nash: "We are leaving. You don't need us".

Move your money and send the bankers a message that they have not paid nearly enough! Know this, it is in the interest of the bankers to divide the guy who is getting relief from a toxic mortgage from the guy who is scraping by as they struggle to make their payments. To the guy who is making payments, don't get mad at the guy who got the toxic mortgage.

Be angry at the banks who allowed your house value to inflate in value and drop as well because of all the toxic loans they made. Just remember, the Scam continues by these guys like Bove and Jeff Mackey pitting homeowners against each other. You guys struggling to be ethical need to understand that walking away from a mortgage is walking away from a huge scam. That is not unethical!